Recovery Fund
Barron's Business Dictionary:
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Recovery Fund
In real estate, fund that requires licensees to contribute, then reimburses aggrieved persons who are unable to collect from brokers for wrongdoings. A recovery fund is generally administered by a state Real Estate Commission.
| Recovery, Recourse Loan, Recourse | |
| Recovery Period, Recovery of Basis, Recruiters |
Barron's Real Estate Dictionary:
Top
Recovery Fund
Generally administered by the real estate commission .
Requires licensees to contribute, then reimburses aggrieved persons who are unable to collect from brokers for wrongdoings.
Example: A typical state’s recovery fund law requires all new licensees to contribute $10 to the fund. Anytime the fund account balance drops below $500,000, all licensees will be assessed. Payments from the fund to an aggrieved person may not exceed $10,000; total payments on behalf of any licensee may not exceed $25,000. The recovery fund pays only when the broker does not.
Requires licensees to contribute, then reimburses aggrieved persons who are unable to collect from brokers for wrongdoings.
Example: A typical state’s recovery fund law requires all new licensees to contribute $10 to the fund. Anytime the fund account balance drops below $500,000, all licensees will be assessed. Payments from the fund to an aggrieved person may not exceed $10,000; total payments on behalf of any licensee may not exceed $25,000. The recovery fund pays only when the broker does not.
| Recourse, Recording Fee | |
| Red Herring, Redeem (mortgage) |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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